China can and will do anything to keep the world steady until they have had their Quincincera, aka Summer Olympics, and then they will not care. At that point, USA will be on its own, and our "leaders" know it. In the meantime the meanderings on the markets, etc are just so much stealing what is not nailed down until the Chinese finish their party and take the gloves off.
China will then begin to take its place in the world order, and play second fiddle to no one. The hamiltonians need China more than China needs the hamiltonians. Organizing around China will be a big feature when Hillary is president come January 09.
One of the new ideas from the Hamiltonians is to outlaw shorting stocks, especially Fannie mae and freddie mac. Aside from its role as market honesty enforcer, shorting is also a way to preserve your wealth.
If you have $50,000 in Fannie mae stock, and you cannot afford to lose your money, and the volatility scares you, there is a very cheap insurance called, shorting. You own $50,000 long, and you short $50,000. Bet both ways, and no matter what happens, your wealth is preserved.
If they in fact outlaw shorting, they will actually outlaw preserving your wealth. If they do so, what it really measn is they made sure you lose, and their friends win.
Wednesday, July 16, 2008
Not a Prediction
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4 comments:
What is the advantage of betting both ways over selling the stock?
The vast majority of investors have their stocks trapped in a 401k, so they must stay invested... since everything is volatile now, shorting would work on any stock or bond... why not just sell and leave cash in the 401K? The dollar is getting killed. Treacherous times, these.
Betting both ways would not reduce your exposure to the dollar continuing to get killed.
Right, and they are different asset categories. So if you want to protect your fannie mae investment, short fannie mae as a balance. If you want to protect your dollar investment, short the dollar.Either way, with the economy in a tailspin, shorting seems the only way to protect yourself. problem is, it appears shorting FM is being made illegal, which is moot since they are cooking the books to make short squeezes anyway... short funds are what I am doing. No margin calls...
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